System and method for intelligent currency validation

ABSTRACT

Currency is validated by comparing identifying information extracted from the currency, such as a serial number associated with the currency, to identifying information in a list corresponding to invalid currency, such as counterfeit currency. If the extracted identifying information matches identifying information on the list, the currency is deemed invalid. A photograph or thumbprint image can be obtained by a person using the invalid currency to help in later identification of that individual. Optical character recognition techniques can be used to extract the identifying information.

The present application is a continuation of U.S. patent applicationSer. No. 11/407,962 filed on Apr. 21, 2006, which is incorporated hereinby reference in its entirety. The present invention claims the benefitof U.S. Provisional Application No. 60/673,374, filed Apr. 21, 2005,which is hereby incorporated by reference in its entirety.

BACKGROUND OF THE INVENTION

Since the advent of paper money, counterfeiting is a major concern. Theability of individuals or organizations to generate and pass counterfeitcurrency can have devastating effects on businesses and nations. Toolsavailable to authorities charged with fighting counterfeiting haveadvanced such that counterfeiting by amateur and/or unorganized groupshas been largely eliminated.

However, advances in technology, such as scanners, color laser printersand image processing through PCs, are beginning to tip the scales infavor of the counterfeiters again. This is especially true where thecounterfeiters are large, organized groups. In extreme cases, suchcounterfeiting can lead to destabilized economies or dangeroussituations. For example, extremist groups can use counterfeiting toprocure weapons for terrorist activities. In another example, a countrymay try to destabilize the economy of an enemy by introducing large sumsof counterfeit currency to its enemy's economy. Further, counterfeitingoccurrences are becoming more difficult to detect. For example, today,counterfeit bills can be made to look and feel authentic. This isbecause they often use the same printing device, paper, ink, and othertechnology as used for printing legitimate currency. As a result, often,the only limitation on such organized counterfeiters is that they cannotinvent new serial numbers. Consequently, they must use the same(duplicate) serial numbers as legitimate currency. Consequently, amanner for detecting occurrences of counterfeiting and the identity ofthe counterfeiters is required.

SUMMARY OF THE INVENTION

Embodiments of the present invention provide a system and method foridentifying instances of counterfeiting as well as the counterfeitersthemselves. In one embodiment of the present invention, this isaccomplished using unique identifying information associated with themoney. For example, the unique identifying information can be the serialnumber associated with the currency.

Embodiments of the present invention can be used in numerousapplications. For example, embodiments of the present invention can beused in conjunction with conventional currency counting devices. uniqueidentifying information is extracted from the currency as it is counted.A special purpose printer can be added to print the extracted uniqueidentifier on the securing tape of a currency bundle when stacks ofcurrency are bundled. This prevents a counterfeiter, for example, acashier from replacing the money with counterfeit money. Otherembodiments of the present invention include drawerless cash registers(DCRs), automatic tellers (ATMs), local currency-to-foreign currencyexchange machines, utility bill pay machines (UBPM), pay bill machines,and money/check/credit vending machines (VM) to name a few. Embodimentsof the present invention can also be used in other applications, asdescribed below.

Embodiments of the present invention include a currency imaging system.The currency imaging system comprises a couple charge device (CCD). SuchCCDs, for example, can be similar to ones readily found in scanners usedfor transferring pictures and images to a personal computer (PC). Theimage recognition system can further comprise optical characterrecognition (OCR) software. In an embodiment of the present invention,the OCR software recognizes and electronically stores the serial numberof the currency. The currency imaging system of embodiments of thepresent can also include an element (ICON). ICON depicts the entiresurface of the paper currency. Either both or select portions of thecurrency can be depicted. Moreover, using a scanner's software abilityto magnify an image, tiny specific details that are generallyunobservable with the naked eye can be isolated or selected. These smalldetail areas can be compared to identify information corresponding tothe existing real currency.

OCR software of embodiments of the present invention can be used toextract unique identification information from the currency. This uniqueidentifying information can include denomination numbers, serialnumbers, left and right series numbers, printing numbers, issuing banknumbers, date of printing, treasury and secretary signatures, or anyother number, letter, icon, or identifying information to help verifythe authenticity of the currency. As described below, using the uniqueidentifying information, embodiments of the present invention candetermine whether currency is legitimate or counterfeit.

In addition to extracting unique identification information from thecurrency, an electronic ID (TAG) can be added to every bill passedthrough an embodiment of the present invention. The tag can identifycountry, time, special place where transaction occurs, or whether thespecific bill was a part of a bigger amount or if it was passed alone.

Embodiments of the present invention can also include an ultra-violetlight. The ultra-violet light is used to detect ink color and paperquality. Further, with the appropriate back lighting. the ultra-violetlight can be used to recognize watermarks.

In addition, embodiments of the present invention can include amagnetometer. Use of magnetometers allows detection of metallic lines(wires) imbedded between the paper layers. From such magneticproperties, embodiments of the present invention are able to discernbetween a metallic element placed in real currency and an ink line usedby unsophisticated counterfeiters. Some embodiments of the presentinvention can also read magnetic inks.

The ability to digitize and recognize serial numbers associated withcurrency offered by embodiments of the present invention provides animportant application for an embodiment of the present invention, sincethe serial numbers of the currency can be compared in the system'smemory with an existing list of available serial numbers arranged bydenomination and/or issuing date supplied by the country's treasury drappropriate department. In this manner, an embodiment of the presentinvention can determine the denomination simply by the existence of thatserial number on the supplied list.

Further, serial numbers obtained from the under-investigation currencycan be compared with other lists of serial numbers. Such lists include,for example, lists of serial numbers for currency representing stolenserial numbers, fraudulently obtained serial numbers, serial numbersused by special agencies, for example narcotic agencies, to trace thepath of currency recipients from the result of a “sting” or surveillanceactivity, money destroyed by the treasury department due to age, beingvoided or canceled, or other reasons. Based on the comparison, whetherthe under-investigation currency is authentic or counterfeit can bedetermined.

Such lists of serial numbers could be entered into a system according toan embodiment of the present invention, and stored on any storagemedium, including. ROM, PROM, EPROM or any other magnetic or opticalstorage media, including hard disk, soft disk, and CDROM. The lists canbe bi-directionally transferred through any communication linksincluding, for example, a modem and a telephone line or cable TV,satellite communication, radio, Network P/C or any another communicationsystem that can transfer such lists.

Embodiments of the present invention can be operated manually orautomatically. For example, in a manual embodiment of the presentinvention, an operator is instructed to undertake one or more scheduledactions. In an automatic embodiment of the present invention the systemperforms the actions automatically.

Further, in an embodiment of the present invention, a hidden camera isconfigured to automatically photograph a patron when the currency usedby the patron fails authentication. Alternatively, or in addition to thephotograph, the patron can be prompted to push a specific button.Coupled to the button is a special camera to record the patron'sfingerprint or part thereof when the currency used by the patron failsauthentication. when the button is pressed and to go forward to otheractivities that have been pre-programmed.

Embodiments of the present invention store locally one or more serial(or other identification) numbers of scanned currency in optical,magnetic or any other storage medium. For example, where an embodimentof the present invention is installed in a bank, super market or anyother establishment in which money can be exchanged, the serial numberscorresponding to each incoming bill is extracted and stored. The serialnumbers can also be transmitted through a communication link to a properauthority at a predetermined time.

Alternatively, for example, in the case of an unlawful action (such as arobbery), the numbers of the bills can be transmitted to a centralprocessing authority. The central processing authority can group theserial numbers into a “blacklist.” The blacklist can be distributed toone or more other nodes in a network so the nodes can take appropriateaction. In this manner, the stolen money can be rendered unusable toperpetrators. For example, in an embodiment of the present invention, ifcurrency having a serial number on a blacklist is used, an alarm orother notification is provided. This action can lead to apprehension ofthe perpetrator.

Use of blacklists may benefit society financially and socially. Forexample, in addition to immediate notification of attempts to passinvalid currency, blacklists can impose impediments to using money indrug trafficking, money laundering operations, and even help prevent taxevasion.

Installation of a network according to an embodiment of the presentinvention can be structured as a pyramid. At the top of the pyramid is aCentral Bank. The central bank includes counterfeiting control services.The counterfeiting control services can compare currency identifyinginformation (e.g., serial numbers) regularly for evidence of invalidinformation such as a duplicate serial number. The counterfeitingcontrol service of the Central Bank is connected with a lower level. Thelower level can include, for example, the banks of a particular country.For example, if the system is installed in the European Union, the lowerlevel may include the banks of a particular European country. E. U.central banks obtain currency identifying information from the otherbank's branches, which function in their countries.

Consequently, if a counterfeiting event is detected, the central banksof each country are contacted immediately, or through their branches,with the units that exchange money. Such unit include Public Funds,Booking Office, Post Offices, Airports, Department Stores, casinos,entertainment centers.

The birth of the euro is an ideal time to create and establish acurrency validation system according to an embodiment of the presentinvention. One reason is that a huge number of cash registers need to bechanged. That need provides businesses with an opportunity to choosecash registers configured to validate currency according to anembodiment of the present invention. Existing cash registered could beretrofitted to practice an embodiment of the present invention.Alternatively, new cash registers configured to practice an embodimentof the present invention could be procured.

The participating country members will benefit from implementations ofembodiments of the present invention because it will minimize loss fromcounterfeiting, and, as a result, robberies, blackmailing, tax evasion,etc. Moreover, the system will create job positions for the operators ofthe system and for the manufacturing and maintenance.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic diagram of a network in a system according to anembodiment of the present invention.

FIG. 2 is a block diagram of a system according to an embodiment of thisinvention.

FIG. 3 is a memory allocation structure according to an embodiment ofthe present invention.

FIG. 4 is a logic flow diagram for system's software according to anembodiment of the present invention.

FIG. 5 is an exemplary embodiment of block diagram of a system accordingto an embodiment of the present invention.

FIG. 6 is a schematic diagram of a Drawerless Cash Register according toan embodiment of the present invention.

FIG. 7 is a schematic diagram of a Local Currency to Euro ExchangeMachine according to an embodiment of the present invention.

FIG. 8 is a schematic diagram of a Video Fingerprinting System accordingto an embodiment of the present invention.

FIG. 9 is an exemplary screen shot of a video screen according to anembodiment of the present invention.

FIG. 10 is perspective view of an exemplary handheld universal currencyreader (UCR) according to an embodiment of the present invention.

FIG. 11 is a block diagram of a handheld UCR according to an embodimentof the present invention.

FIG. 12 is a schematic diagram of the Desktop currency reader accordingto an embodiment of the present invention.

FIG. 13 is a block diagram of a controller to use with a Desktopcurrency reader according to an embodiment of the present invention.

FIG. 14 is a block diagram of a power supply of a Desktop currencyreader according to an embodiment of the present invention.

FIG. 15 is a schematic diagram of an apparatus to retrofit existingmoney counters to read serial numbers according to an embodiment of thepresent invention.

FIG. 16 illustrates a typical format of data transmission including a“TAG” attachment according to an embodiment of the present invention.

FIG. 17 is a schematic diagram of network design that allows fast andsecure exchange of data between agencies according to an embodiment ofthe present invention.

FIG. 18 is a block diagram of an OCR routine according to an embodimentof the present invention.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 is a schematic diagram of a network for validating theauthenticity of paper money according to an embodiment of the presentinvention. The network includes several local store arrangements, suchas store arrangements 1. store arrangements 1 are coupled to a CentralUnit such as Central Unit 2. The coupling can be over any communicationlink, including for example, land line or air interface. For example, asshown in FIG. 1, the coupling is through the telephone company viamobile or dial-up telephone line 11.

Preferably, data transmissions from and to central unit 2 are encrypted.Such encryption is well known to those skilled in the art. An example ofsuitable encryption is described in U.S. Pat. Nos. 4,241,237 and4,455,453, each of which is hereby incorporated by reference in itsentirety.

Each store arrangement 1 includes a local CPU 3. Local CPU 3 includes aresident LAN Card 4 connected via twisted pair or coaxial wires to acurrency reading and authenticating currency device (RAD) 6. CurrencyRAD 6 is connected with a money collecting device 7. Money collectingdevice 7 can be any device for collecting money, including, for example,cash registers. Currency RAD 6 includes an internal video camera 10 anda currency input port 8.

Store arrangement 1 can include one or more currency exchange machinessuch as Euro to Local Currency Exchange Machines 9 coupled to CPU 3. CPU3 is connected internally or externally with a MODEM 15, which isconnected with a telephone line or with any other means to connect thesystem with central office/processing unit 2.

Central office/processing unit 2 includes a communication hub server 12.Communication hub server 12 is coupled through a communication link to alocal CPU 3. Communication hub server 12 is further connected to aprinter. In addition, communication hub server 12 is connected throughtelephone network with one or more higher level centers 14. The one ormore higher level centers 14 are connected to the higher-level centraloffice/processing units (2) or even the peak of the pyramid structure ofthe network topography illustrated in FIG. 1.

In operation, one embodiment of the present invention operates asfollows. A cashier of a business receives currency from a patron. Thebusiness can be any business where currency may be used in a transactionincluding banks, supermarkets, department stores, retail outlets or anyother such business. When the currency is received the cashier placesthe money in a currency input 8. The currency is placed in currencyinput 8 such that unique identification information (e.g., serialnumbers) associated with the input currency can be obtained. Forexample, serial numbers can be obtained by digitizing the serial numbersand processing the digitized serial numbers using OCR software. Thedigitized serial numbers are transmitted through lines 5 and LAN card 4and are stored in the memory of the CPU 3. If the patron enters thecurrency directly into currency input 8, the same procedure will befollowed to digitize, OCR process and store serial numbers associatedwith the

In an embodiment of the present invention, at pre-determined timeintervals, CPU 3 communicates with local hub server 12 to send local hubserver 12 all stored serial numbers. If during operation CUP 3 receivesthe same serial number more than once or determines that a serial numberis on a blacklist, the system will invoke an appropriate programresponse. For example, in one embodiment of the present invention, thesystem will cause a picture of the patron to be taken and recorded, andwill send instructions to the cashier and other authorized personnel.The picture of the patron is saved along with other data. The type ofdata saved according to one embodiment of the present invention isillustrated in FIG. 9. The data is then transmitted to the centraloffice/processing unit 2 for further action.

The system responds in a similar manner if the CPU 3 determines that areceived serial number belongs to a “list” of invalid numbers. Theinvalid numbers may correspond to stolen money, money known to be fromdrug traffic, counterfeit, or other invalid money.

In the case of illegal activity, such as an armed robbery, a cashierwill be forced to surrender currency to a perpetrator. According to oneembodiment of the present invention, soon after the perpetrator leaves,CPU 3 transmits all serial numbers of the stolen money to hub server 12.Hub server 12 receives the serial numbers of the stolen money, andgroups the list of stolen numbers in a blacklist. Hub server 12transmits the blacklist to each CPU in its branches of the network aswell as each central office/processing unit 14 of a higher level of thenetwork. If the stolen money is used, the serial number will match aserial number in the blacklist. When such a match occurs, the systemrecords a picture of the party trying to use the currency correspondingto the matching serial numbers and follow the appropriate action plan. Asimilar procedure is followed if the money comes from a “sting”operation such as narcotics surveillance. In such a case, serial numbersassociated with money to be used in the “sting” are placed in a redlist(which is used in a similar manner to the blacklist described above) andemployees follow the appropriate programs.

FIG. 2 is a block diagram of a system according to an embodiment of thepresent invention. An exemplary customer interface is shown on the lefthand side of the diagram. The customer interface can include a CRTmonitor 16 to provide messages for the operator, a loudspeaker 17 toprovide messages for the operator, a microphone 18, a video camera 10, akeyboard 19, and a printer 20 to print hard copies of receipts.

FIG. 2 also illustrates common communications links such as: telephoneline 11, cable TV 21, AM-FM radio-satellite reception antenna 22. Anyexisting or future bi-directional communications link can be used.

The input/output devices are connected bi-directionally with theintelligent currency validator and other applicable devices such as:

-   -   1) Drawerless Cash Register 25;    -   2) Utility bill pay machine (UBPM) 26. A patron inserts a        utility bill to be paid in an appropriate entrance slot of UBPM        26. The system recognizes the bill and the amount to be paid and        instructs the patron to insert the paper currency in the proper        currency input slot. UBPM 26 and then determines the        authenticity of the currency. If the currency is authentic, UBPM        26 stamps the bill as a “paid”;    -   3) Cash Gambling Machines (CGM) 27. CGMs dispense gaming        tickets, for example, lottery tickets, such as LOTTO, PROTO,        XISTO, and Pick Five. AN embodiment of the present invention can        be retrofit for use in an existing CGM or incorporated in a new        CGM;    -   4) Vending Machines (VM) 28.    -   5) Cash Dependent Businesses 29. Casinos, banks savings and        loans, and any other business that can handle large amounts of        money will benefit from the installation of the proposed system        because it helps protect the business from counterfeit losses        and from robberies;    -   6) Local Currency to Euro Exchange Machine 9. Patrons exchange        the local currency to a new euro, in a operation such as        explained below. In one embodiment of the present invention, an        exchange machine embodiment of the present invention is similar        to an ATM. Such an exchange machine embodiment of the present        invention dispense cash as well as provides all the other        options which an ATM offers.

The ability to read serial numbers allows an embodiment of the presentinvention to offer a “secure cash” service. “Secure cash” is similar totravelers' checks, but eliminates the hassle of signing and carryingseparate pieces of paper (checks). Thus, “secure cash” permits cash tobe reimbursed to a patron if his cash is lost or stolen. In operation,when a patron obtains cash from a cash dispensing machine such as an ATMor currency exchange machine, the cash dispensing machine offers thepatron the an option to use the secure cash service. If the patronaccepts the offer, the system dispenses the requested cash. In addition,a printer included in the cash dispensing machine prints the serialnumbers associated with the dispensed cash on a receipt that is providedto the patron along with the requested cash. The patron can use thereceipt to be reimbursed if cash is lost or stolen. A fee can also bededucted from the patron's account for use of the secure cash service.After dispensing the requested cash and printing the serial numbers onthe receipt, the cash dispensing machine enters serial numbersassociated with the dispensed cash numbers in a secure cash list. Eachtime patron uses secure cash in an establishment configured with one ormore RADs (described above), serial numbers associated with used securecash are subtracted from the secure cash list. If the patron loses hismoney, upon reporting the loss, the administrator of the system, entersthe serial numbers which have not been used, to a wanted cash list.Whenever this “wanted” cash resurfaces, authorities can follow setprocedures to recover it. Further, the rules and regulations for thetravelers' checks and fraudulent claim loss penalties, can be appliedfor the “Secure” cash.

FIG. 3 illustrates a memory allocation structure according to anembodiment of the present invention. As shown in FIG. 3, the memory canbe partitioned into ranges of addresses corresponding to particularcurrency denominations. In particular, in a first address of the memory,the beginning of the issuing serial numbers for a particular currencydenomination is stored. In a second address of the memory, the end ofthe issuing serial numbers for a particular currency denomination isstored. In a third address of the memory, the denomination of thecurrency, e.g., 5 euro, can be stored. Other address ranges can be usedto store similar information for other currency denominations.

Between the beginning and the end of each currency issuing lot areplaced all the numbers which are unacceptable, e.g., numbers which arecanceled due to overuse, being destroyed, or belonging to certain lists,for example, blacklists or redlists described above. In this manner, theuse of available memory can be limited as much as possible. Further, anycommercial memory supporting software available in the market can beused.

FIG. 4 is a flow chart for validating currency according to anembodiment of the present invention. Initially, the system is in astandby condition 30. When an entrance sensor 31 triggers, an order isgiven to start a paper money entrance motor 33. When the currency passesunder a scanner 32, identification information such as the serial numberassociated with the currency 33 is read. For purposes of the presentdescription, the identifying information is assumed to be the serialnumber associated with the currency. After the serial number is read 34,the read serial number is compared with a list in a memory 35. If theserial number associated with the currency exists 36, the number issearched in a blacklist 37. If the serial number is not in theblacklist, the serial number of the currency is compared to a list ofserial numbers for the denomination of the currency 38. If the serialnumber is appropriate for the particular denomination of the currencyunder investigation, the serial number and denomination are stored in asuitable memory 39. The system then returns to the standby 30 state.

If on the other hand, the read serial number is in a list, a flag israised 40 the system then returns to start point 30. Similarly, if thenumber isn't in the memory 41, the denomination of the currency does notmatch the serial number 42, or the system determines the currency isinvalid for some other reason, a suitable subroutine is initiated totake the proper action.

FIG. 5 is a schematic diagram of an exemplary intelligent currencyvalidation system according to an embodiment of the present invention,in which stacked currency 43 is placed by an operator into the currencyinput, such as a currency input port. The currency input includes aretainer plate 46 and a spring 45 loaded pressure plate 44. Upon thedetection of the presence of the currency by currency detection sensors,intake wheel 47 moves the first bill of the stacked currency 43 to theappropriate rollers 49 assisted by a belt system 50. A counter-directionruffle cylinder 54 prevents a second bill from being inserted into themechanism, thereby allowing only the top bill of the stack to go throughthe optical scanner 48. Optical scanner 48 contains its own lightsource. Optical scanner 48 scans the bill to obtain an image of thebill. The image from optical scanner 48 is transferred to CPU 3. CPU 3processes the image using an OCR program stored in memory 24 to obtainidentifying information associated with the bill. For example, theidentify information can be a serial number associated with the bill.CPU 3 compares the serial number from the scanner with available serialnumbers stored in a memory 55. Upon successful comparison, CPU 3 issuesa command to store that successful transaction into memory 55, untiltransfer by the communication link to a central office/processing unit.

FIG. 6 is a schematic diagram of a drawerless cash register (DCR) 25according to an embodiment of the present invention. More specifically,currency entry ports 10 and 20 allow a cashier to place a stack ofcurrency 56 and 57 in DCR 25 according to their denomination. Thecurrency is advanced forward by rubber wheels 58 and 59 and forced topass under a magnetic sensor 60, optical scanner 48 and an ultra-violettube 61. The currency is authenticated as described above. If thecurrency is authenticated, DCR 25 places the currency in money stocks 62and 63 according to their denomination. It would be apparent to thoseskilled in act that a drawerless cash register embodiment of the presentinvention can have as many entry ports and money stocks as required toprocess any number of different currency denominations. DCR 25 also hasa provision to return the change to the customer 64, 65 in such a waythat the cashiers do not have to open and close drawers. In this manner,DCR 25 manages the money automatically and safely.

During the currency authentication procedure and as soon as the currencyis verified, DCR 25 stores their serial numbers as described above. Ifthe currency is not authenticated, the money is forwarded to an exit 66as unacceptable.

When returning change to a patron, DCR 25, in one embodiment of thepresent invention, returns money in a (FIFO) first in first out fashion.That way, DCR 25 can track what money comes in and what goes out foradded security. For example, DCR 25 can be used to prevent or indicatethe money being removed by force or illegally. For added functionality,DCR 25 can employ a backlight bulb 67 to read the watermark in thecurrency.

FIG. 7 is a schematic block diagram of a Local Currency-to-Euro exchangemachine according to an embodiment of the present invention. On the leftside is an exemplary customer interface. The customer interface includesa video camera 10, a loud speaker 17, a CRT 16, a keyboard 19, amicrophone 18, a printer 20 and a special button for the fingerprintreception 68. The Euro Exchange Machine includes a money entrance port70, a money exit port 80 and a port for receiving euro 86, and a portfor receiving euro coins 92.

In operation, when a patron presses a start button 68, a CPU 3 instructshim through a display 16 and a loud speaker 17 to perform further steps.The patron places his local currency in money entrance port 70. Througha wheel 71, the patron's local currency advances and passes under amagnetic sensor 60, an optical scanner 48, a U/V tube 61, and awatermark tube 67. Using signals from these devices, CPU 3 determineswhether the currency is authentic as described above. If the localcurrency is deemed authentic, a wheel 72 forwards the currency to thewheels 73 and 78. The local currency is then stored in storing stocks 77and 79 by denomination.

In an embodiment of the present invention, the currency to be exchangedis damaged to render it unusable. Prior to storage, CPU 3 instructs asolenoid 74 through a perforating tool 75 to open a hole in the localcurrency to render it unusable. The currency can then be discarded. Thediscarded currency will be collected from the collection bucket 76. Theperforation of the currency, can be of a different shape for eachmachine so that it can be recognized easily. The stored, perforatedcurrency can be stored in lower security environment until it isdestroyed totally or it may be kept for any other use.

Unaccepted currency (i.e., currency that is not authenticated) isreturned to the patron through port 80 along with instructions throughthe display 16 and the speaker 17 indicating the currency was notauthenticated. In addition, when the currency is not authenticated, theexchange machine records a picture of the patron. The exchange machinecan further instruct the patron to press a button 68. In addition tobeing a start button, button 68 acts as a triggering mechanism totrigger a fingerprint recording process. As shown in FIG. 8, pressingbutton 68 causes a switch 95 to start a video camera 96 to record all ora part of the patron's fingerprint. This fingerprint can be incorporatedin the video screen 98 as shown in FIG. 9.

The euro exchange machine can also ask the customer if he prefers thereturn of the non-authenticated currency presently, or he can provideadditional information through the keyboard (19) so the system cancredit his account as soon as the manual authentication takes place. Thedata provided by the patron through the keyboard (19) will appear in thescreen (98) along with the data provided automatically by the system.Exemplary data is illustrated in FIG. 9. All, or a desired portion, ofthe data, is stored and transmitted accordingly. If the patron providesthe wrong data or flees the scene, the exchange machine follows aprogram to notify the proper authorities.

It would be well know to those skilled in the art that the patronphysical feature capture and storage aspects of embodiments of thepresent invention can be more or less complex. For example, video camera96 can analyze the fingerprint image to determine if the print is from ahuman finger or whether the patron is wearing a glove. In addition,video camera 10 can analyze an image of the patron to determine if theface of the patron is real or covered such as by a mask.

Referring back to FIG. 7, after authentication, perforation and storageof the local currency, the system dispenses the appropriate amount ineuros from stacks 81 and 82 through the rubber wheels 83 and 84 andadvances the money to a belt 85. Belt 85 then forwards the currency intoan exit 86.

It would be apparent to those skilled in the art that the exchangemachine can incorporate coin stacks 87. Along with a dispensing motor88, coin stacks 88 dispense coins. In operation, for each full turn ofdispensing motor 88's axle 89, a bracket 90 dispenses a single cointhrough a slot 91. The dispensed coin moves along belt 85 to a position92, where it is ready for the patron to collect.

As described above, FIG. 8 is a schematic diagram of a typical videofingerprinting system according to an embodiment of the presentinvention. A push button 68 is constructed with a transparent materialshaped as a magnifying lens in its center. Push button 68 rotates aboutan axle 93, and is illuminated by a light source 94. When push button 68is pressed, a switch 95 closes. Closure of switch 95 triggers the logicof the system, which puts into operation a digital camera 96. It wouldbe apparent to those skilled in the art that numerous other procedures,schemes and mechanisms can be employed for the recording of thefingerprint. The video fingerprinting system of embodiments of thepresent invention is particularly well suited to ATM applications of thepresent invention.

FIG. 9 is an exemplary screen shot of a video screen for displaying datacollected from a patron when currency is not authenticated during atransaction according to an embodiment of the present invention. Asshown in FIG. 9, the screen can display a variety of data about aparticular transaction, including a picture of the patron 98, a pictureof his fingerprint, and certain data provided by the system. Such datacan include location as well as data that is voluntarily provided by thepatron. The screen can be stored in a memory or can be discarded to savetransmission time and memory.

Another embodiment of the present invention is directed to a handhelduniversal currency reader (UCR). FIG. 10 is a schematic diagram of ahandheld UCR according to an embodiment of the present invention. UCR100 is preferably configured to read virtually any currency. HandheldUCR 100 preferably uses flash memory technology 108, for example, asemployed by digital cameras to store, e.g., millions of characters(text) or thousands of pictures.

Handheld UCR 100 is preferably configured in one of at least two ways:portable or direct connect. In a portable configuration, handheld UCR100 is set up to operate via wireless connection 117 (see FIG. 11) orcan be set up to operate offline. When operating wirelessly, handheldUCR 100 can upload scanned/detected serial numbers and receive real-timealerts for wanted currency or counterfeit currency. When operatingoffline, handheld UCR 100 is able to store a plurality of serial numbersand wanted currency lists for real time alerts. As shown in FIG. 11, theunit can be connected at a later time either directly via a hardwareTCP/IP stack to a LAN 116, the Internet via modem 115, orindirectly—via, e.g., a USB port 112 to a computer or other device. Whenconnected to the network, UCR 100 can send and receive updates to theserial numbers and wanted lists.

In the direct connect configuration, handheld UCR 100 preferablyprovides the same functionality, described above, as that provided inthe portable wireless configuration, except the device is continuallyconnected to a network via, e.g., a USB port. This configuration can beparticularly useful in an office setting, a police car, militaryvehicle, or other location where a network connection may be readilyavailable.

Device 100 also has a credit card reading slot 102 to accept creditcards or passport, reading or other data entrance described in thepresent description. It also has a viewing window 101 that allows thedevice to be placed correctly over a bill 105 that is being analyzed.Device 100 also has a keyboard 104 to select the type of currency. Forexample, the type of currency can be selected by pressing a digit onkeyboard 104. Device 100 may also have a readout display 103 so that theoperator can see the serial number of the bill being examined and havethe opportunity to verify the read serial number.

Device 100 includes a camera. The camera images the currency. Using OCRsoftware, device 100 processes the image to obtain identifyinginformation, such as a serial number, associated with the currency. Theidentifying information can then be stored, transmitted, or manipulatedas described above.

The camera also allows more diverse applications for device 100. Forexample, the camera can be used to take a picture of a car's licenseplate. The license plate can then be converted to text using OCRsoftware. The text data corresponding to the license plate can beprovided to an officer or sent through a communication link to thecentral office for further processing. Device 100 can also be equippedwith a light so the camera can be used in diminished light conditions.

Additional applications for device 100 include reading a utility meter.In such an applications, device 100 can record the consumption ofelectrical gas or water and, consequently, be used to aid utilities tocollect information for billing purposes.

Device 100 can be used to read any string of human readable numbers oralphanumeric characters according to the needs of the user. The device100 can be connected to various authorities such as Customs, DEA, FBI,Homeland Security, Local PD, L.E.A, Interpol, IRS, Banks, EuropolTreasury. The ability of device 100 to communicate with the authoritiesgives such authorities the opportunity to track and trace wantedcurrency according to each authority's needs. For example, as describedabove, the D.E.A. can trace the cash it uses to buy drugs in a stingoperation; the F.B.I. can trace cash from armed robberies or extortion;Homeland Security can trace cash used by terrorists; and Treasury cantrace counterfeit bills.

FIG. 11 depicts an exemplary block diagram of a handheld UCR 100according an embodiment of the present invention. A reader 106 scanscurrency and delivers raw CMYK (cyan, magenta, yellow, and black) datato a memory, control unit (MCU) 107. The reader can be any device forthat can be used to obtain identifying information from currency. Suchdevices include optical sensors, cameras (CMOS or CCD), bar codereaders, RFID readers, credit card readers, passport readers, and driverlicense readers. MCU 107 may be associated with its own flash memory 110and optical character recognition (OCR) engine 109. The MCU 107 may alsobe connected to a separate flash memory 108 in which the same ordifferent OCR program/database may be stored. In a preferredimplementation, a real time clock (RTC) 111 is provided to record a timeof scanning or time of program update. When device 100 is not connectedvia USB port 112, a memory stick 113 is preferably used to store scannedcharacters, in addition to other data, and to receive and store textfrom the OCR program. Memory stick 113 can be easily removed fromhandheld UCR 100.

As will be appreciated by those skilled in the art, handheld UCR 100provides significant portability possibilities to the functionality ofthe intelligent currency validation network described herein.

Additional information can be derived using information stored by device100. For example, if the authorities deem appropriate, a stored picturecan be stored and analyzed for statistical purposes such as to find outhow many men or women use the machine, ages of users, and the preferredtimes of operation.

Another embodiment of the present invention is directed to a desktopcurrency reader 124. A schematic diagram of a desktop reader 124according to an embodiment of the present invention is illustrated inFIG. 12. Desktop currency reader 124 is separated into six functionalparts to facilitate its description. These parts are depicted in FIG.13. The core of desktop currency reader 124 is a microprocessor unit 120and its support circuitry.

In an embodiment of the present invention, microprocessor 120 operatesas follows. An ID input unit 119 captures a digital image of uniqueidentification data that exists on a bank note, a check or any otherdocument and converts it to a stream of binary data that can beprocessed by CPU 120 and/or be printed by a graphics printer via aprinter interface unit 122. Configurations of ID input unit 119according to several embodiments of the present invention are describedbelow. A second alternative input path of data to the CPU 120 is viaprinter interface unit 122 where, graphic output of the interface iscaptured and directed towards CPU 120. A third alternative input pathfor the data to CPU 120 is via a data storage unit 123, that containseither raw data (bit streams or images) or preprocessed data (scartchpadmemory). CPU 120 can save the incoming binary data as it is comes in,i.e., as a raw data stream, save the data after partial processing, orsave the data after full processing. The data is stored in data storageunit 123.

Data storage unit 123 can be divided logically and/or physically intodifferent partitions. Divinding data storage unit 123 into partitionsallows CPU 120 to either resume processing at a later time, or totransmit the data to an output Interface.

Binary input data are processed by CPU 120 to extract the embeddedidentifying information of the document. Data processing includes OCRsoftware for human readable characters as well as Signaldemodulation/decryption for machine readable signals including HID,barcode, magnetic signature/profiles etc.

Part of the processing capabilities of the CPU 120 are not data relatedCPU 120 controls all electronic functions including sensing of documentedges, defining start and stop of image scanning, framing and producingdelays.

Data can be sent to a graphics or text printer via printer interfaceunit 122, stored to an external memory (e.g., a memory stick in datastorage unit 123) or even transmitted to a network (computer, LAN, WAN,WLAN or the Internet) via a network interface 121.

The power needed for the operation of the CPU 120 is derived from apower supply unit 118. Power supply unit 118 can either be batteryoperated (using one or more standard or rechargeable batteries), fedfrom an AC-to-DC unit or powered by the external computer attached tothe device—via a. USB connector or any other means available. Thecircuit is built in such a way that power consumption is extremely smallso that even with batteries alone, the device has a long useful lifeaway from AC power sources. Keeping the power consumption low has animpact on the size and weight of the handheld UCR 100 because it shouldbe as small and lightweight as possible.

FIG. 14 is a block diagram of a power supply unit 118 according to anembodiment of the present invention. power supply unit 118 includes arechargeable battery 128 with a “smart” circuit 126 that allows feedingthe rest of the circuit with power derived from the charging circuitwhenever it is plugged to an AC source 125, and using the battery whenit is not plugged to an AC source. Which source is used is determined bya switching circuit 127. Power supply unit 118 also includes a set ofindicators 129 that indicate when the system needs recharging and alsodetect when it should switch itself to a standby mode in order toconserve energy.

Returning to FIGS. 12 and 13, ID input unit 119 includes a CMOS camerasensor 132 and a controller 133 that produces a “snap” (stream of binaryimage data—gray scale or color) whenever a set of sensors 136 indicatesthat a bill 131 is located in an appropriate place in front of atransparent window 135. In this example, an MCU of the camera controllercircuit 133 stores the image information (raw binary data) in ascratchpad memory 132. ID input unit 119 signals CPU 120 or printerinterface unit 122 via a “Data available” signal 130 that a picture isavailable for processing.

CPU 120 has immediate access to a scratchpad memory 132 of the ID Inputunit 119. In this way, when signaled (via the Data Available line) thata complete picture resides in memory 132, CPU 120 starts processing thedata according to the mode of operation (configuration) CPU 120 isprogrammed to use.

Configuration of CPU 120 can be pre-programmed, e.g., stored infirmware, and/or set in the configuration cycle of the device andsubsequently changed dynamically via commands from the Network/Computerinterface unit 121. Exemplary data modes include:

a) Transmit Raw Data Mode

In Transmit Raw Data mode, CPU 120 transmits only the raw picture datato the outside world via the Network/Computer interface unit 121, wherethe rest of the processing takes place.

b). Transmit Bitmap Data Mode

In Transmit BitMap Data Mode, the raw data are converted to pixels (RGBor Grayscale) and are optionally compressed (JPEG or RLE or PNGcompression), before they are transmitted to Network/Computer interfaceunit 121.

c) Transmit B/W Data Mode

In Transmit B/W Data Mode, the raw data are first converted to pixelsand treated with special digital filters to isolate the identifyinginformation from any unwanted background (as is the case with the new10, 20, 50, and 100 dollar bills as well as many other foreign banknotes). These filters can use pattern matching techniques or RGB to HSVto filtered HSV to RGB transformations. The last stage of the transformoperations is a Black and White (B/W) pixel transformation withautomatic contrast and edge detection and framing. Transmit B/W DataMode is an extension of the Transmit Bitmap Data mode described above.

d) Transmit Text Data Mode

Transmit Text Data Mode uses processing similar to that used in TransmitB/W Data Mode described above to convert the picture data to B/W.Framing is performed for individual characters using a small“descriptor” database residing in a non-volatile memory chip inside CPU120. This “descriptor” database contains information on the generalformat of the ID. For example, the dollar bill descriptor describes theformat of the ID as: a group of two alpha characters that do not containletter “O”, followed by a group of eight numbers and a single characterthat does not contain “O” but can be a “*”. The same chip contains adatabase with data that can be used by the Optical Character Recognitionfirmware for all valid characters. Using the OCR firmware, image dataare converted to text. The text is then transmitted to Network/Computerinterface unit 121.

All above modes (a to d) have a counterpart mode in which CPU 120,rather than transmitting the text to network interface unit 121, storesrelevant processed data in external memory, e.g., data storage unit 123.Data storage unit 123 can be one or more of several configurations,including Non-volatile RAM, EPROM, EEPROM, flash memory, memory stick,multimedia storage devices, and USB storage devices.

Similarly, the output of the processed data can be any graphics capableprinter, including, for example, a thermal/dot matrix printer or awindows compatible printer, in which case the information is transmittedto the appropriate printer interface unit 122.

In another embodiment of the present invention, a sensor is configuredto directly transmit picture information to a graphics printer. In suchan embodiment, CPU 120 can obtain the sensor data this information inencoded form and perform the filtering/framing/OCR operations actingdirectly on the printer-ready data instead.

FIG. 15 is a schematic diagram for a retrofit that can be made in asingle pocket currency counter such as is commonly used in banks today.This retrofit allows the counter to obtain an image of a bill and useOCR to obtain a text version of the bill's serial number. In oneembodiment of the present invention, retrofit includes:

-   -   A CMOS or CCD camera 144 with its controller;    -   A bright light source 145 (e.g., super bright daylight LEDs        because of their tolerance to switching on—off without        deterioration to their bright output for extended periods);    -   A sensor 146 to detect the edge of the bill (e.g., a reflective        sensor);    -   A window 142, (plastic, glass or any other suitable material)        covering an opening in the back side of the counter—or in any        other appropriate position which gives camera 144 a clear view        of the bill 143 as it passes in front of the camera; and    -   Associated electronics (including microprocessor, analog and        digital circuitry, and time delays) both for taking a snap of        bill 143 and appropriate interface to control the motion of the        motor of the machine.

In operation, the currency counter includes a simple DC motor thatrotates the existing roller of a counter 141 as shown, dragging a dollarbill 143, and forcing it to pass in front of a camera 144. A roller 140is allowed to turn only in the direction shown by the arrow, whichallows only one bill to be fed at a time.

As soon as bill 143 passes in front of sensor 146, the counter'selectronics brake the cylindrical roller 141 until it stops momentarily.At this point, the serial number of bill 143 is visible through window142. LEDs (145) are lit and the camera 144 is signaled to snap a pictureof the dollar and pass it through the controller's interface to thecomputer of the reading and authenticating device (RAD) illustrated inFIGS. 12 and 13.

It would be apparent to those skilled in the art that there are manyways of improving the reliability and speed of operation of the system.For example, the DC motors can be replaced with stepper motors. Steppermotors are easier to control and stop with a greater precision. Servermotors—along with appropriate position indicators are another viablereplacement for the DC motor. Further, instead of creating a window onthe back support of the roller, the back can be replaced either by acompletely or partially transparent back. Counting sensors that alreadyexist in the counter can be used to trigger the camera without the needof an additional sensor (sensor 146) as described above.

FIG. 16 illustrates an exemplary format for a data stream file to beused in transmitting information according to an embodiment of thepresent invention. The data stream file includes a typical “TAG”arrangement. To save memory and transmission space, hexadecimal notationis used so each number can be represented by 4 bits instead of 8 bits inof the regular ASCII text notation. This way memory is saved andtransmission time is suppressed. Furthermore, with the hexadecimalnotation, the data stream is illegible and more difficult for hackers tointervene with. In addition, more sophisticated encoding systems can beused.

The basic structure of the transmission data stream according to anembodiment of the present invention is shown in FIG. 16. The data streamincludes the serial number of the currency, special sections of the billwhich may be of interest to a special authority such as the U.S.Treasury Department, such as the time of the previous transaction whichincludes the year, the month, the day, the hour, and the minute of theprevious transaction for tracing reasons. The data stream also includesthe year, the month, the day, the hour, and the minute of the currenttransaction followed by a country code (CC), a town code (TC), and aspecial code of a 4 hexadecimal number which can be used for up to65,535 account numbers. The data stream can also include a special note(SN) indicating if the bill was in or out of the system. Further, thedata stream can includes a custom filled check sum encryption code, anda local database pointer 147 which links the serial number to a metadatabase. Such a link allows many bills to share common data, including forexample, investigator name and phone number, operation name, and place,photographs, passport numbers, and any other data that the agency deemsimportant and necessary.

An embodiment of the present invention can offer improved networking asshown in FIG. 17. In the exemplary network illustrated in FIG. 17, oneserver (and its backup images) contains all data. All end users are ableto connect and share this data through a structured hierarchy. Moreconfigurations can be designed around the concept of tracing banknotesthrough end user reading and authenticating devices (RADs) all over theworld.

An exemplary such design is the intelligent Government Network“iGovNet”, specifically designed for allowing government agencies tobenefit from all the users of the network without relinquishing theownership of their data.

The exemplary design here, utilizes the fact that the “TAG” (FIG. 16)that is attached to the serial number of a bill during any transaction,can be used to link to any database through a use of a database pointerassigned at the moment of the transaction.

In this design, each user—or group of users—can maintain a dedicatedlocal network server 150 at a location that is convenient for them andbuild any kind of configuration for their “internal” LAN. The dedicatedserver can contain both the tagged money file and the local database ata convenient and physically secure location the user chooses. Thededicated server is connected to a system of “traffic controllers” (TCs)149. TCs 149 are servers that actually do not have large storagecapabilities but can accept and re-transmit data from and to “known”destinations.

As shown in FIG. 17, TCs can be connected in expandable clusters. InFIG. 17, the small circles 150 represent systems with local databasesand lists of “wanted” serial numbers belonging to different sections ofagencies are connected to the larger circles (TCs 149).

Every time cash appears at a RAD station 150, serial numbers are readand transmitted to the nearest traffic controller. Each TC, retransmitsto all its neighbors except the originator 148 and waits for anacknowledgment of receipt for all neighbors before it deletes thetransmitting data from its memory. This continues through all connectedTCs until every user 150 in the network has received the batch of serialnumbers. Every user machine 150 then checks the batch of serial numbersagainst its own wanted lists. If there is a match, both the end user 151and the originator of the search are notified. The user can only getTime and Place information of the original transaction, since thedatabase pointer corresponds to a database that belongs to theoriginator of the search—so if more information is needed, the end userhas to contact the originator for more information.

The present example demonstrates several advantages offered byembodiments of the present invention. “Innocent” bills are ignored bythe system. As a result databases are not cluttered with irrelevantinformation without cluttering space in databases. Moreover, only theinterested parties are notified of incidents that concern them—andinformation is processed effectively.

In addition, the system is economical to build and maintain and alsoextremely secure, since serial numbers are not intelligence as theytravel through the system. They become intelligible only at the placewhere a match is found, which is secure by definition. Further, the datatraveling the system can be heavily encoded by modern secure encryptionalgorithms. The data also can be built using bit wise manipulations forcompactness and speed—and thus not vulnerable to lexical analysisattacks.

In this example, distributing databases to small chunks gives theadditional advantage of extremely short sorting and search times.

Another aspect of the pursuit invention is to offer a new and improvedoptical character recognition (OCR) engine that converts optical orelectrical signals to text. The OCR of embodiments of the presentinvention takes advantage of the specific formats of differentcurrencies in order to be optimized for accuracy.

In one embodiment of the present invention, this is accomplished byusing format descriptors and removable internal OCR databases.

Furthermore, the OCR program itself has to be extremely fast, so thatthe recognition process does not slow down other parts of the software.Further, the OCR program should independent of Operating Systemfunctions and graphic routines if it is going to be portable to smalldevices not always connected to desktop or portable computers.

In order to comply with the above, an OCR software has been designed andwill be presented here for demonstration only purposes.

In this exemplary design, the OCR engine (software) is completelydesigned in assembly language for speed purposes. The system uses anextremely small database of about 800 bytes for both OCR and formattingdescriptions.

Special algorithms handle baseline detection and rotation. Removal ofbackground color-noise (especially applicable to new, colorful dollarbills, euros and other foreign currencies) is by using advancedassembler transformations between color spaces like RGB-HSV-RGB-BJW.Geometric transformations are designed for aberrations produced bymotion blurring, fish-eye lens effects and distribution of illumination.

Transformations are all optimized through the use of linear, bilinearand polynomial functions, avoiding time consuming trigonometricfunctions, especially slow in stand alone machines with no floatingarithmetic capabilities.

The system can utilize dual scanning wherever applicable (e.g. full facescanners/check verifiers) with a single voting system (automaticallycomparing the two serial numbers) and three voting system (with humanintervention via picture display). The OCR engine includes statisticalprobabilistic analysis used in conjunction with image processing andpattern recognition, without using vectors, which are too slow for smallprocessors. To compensate for this, the engine revisits similarcharacter decoding (i.e. like C and G) with a secondary, small area(spot) checking and returns both guesses with percentile probabilitythat can be used by the application program to decide when a characteror an “unreadable” code will be used.

FIG. 18 is a block diagram of an OCR routine 151 according to anembodiment of the present invention. OCR routine 151 can be executed ona microprocessor or any other processor that can be configured toperform the operations described herein.

OCR routine 151 accepts as an input a “bitmap” picture 170 in form of abyte array similar to the one produced by GetDIBits of “kernel32.dll” ofthe Windows Operating System. OCR routine 151 has to be aware of certainadditional information, mainly about locale and Serial Number formattingfor the given country 154. This information is parametric and issupplied either by the installation program and/or the correct settingsof the locale information of the operating system when applicable and/orthe Windows registry—if available. According to one embodiment of thepresent invention, the format of the input data is as follows. Sincemost of the optical devices known (cameras/scanners), do not produceDIBits 153 directly, a small encoder routine 152 is used prior tocalling the OCR routine, different for each input image data format(JPEG, RAW, CMYK, EPS etc.)

According to an embodiment of the present invention, the final output ofthe OCR routine is a string, and an array of long integer numbers 167.According to one embodiment of the present invention, the format of dataoutput by OCR routine 151 is as follows. The output data stringrepresents a series of alphanumeric characters. The format of the stringconforms to the acceptable format of the serial number of the currencyand/or denomination of a given country. For example, for the U.S., newbills, the string is ‘AA NNNNNNN A’. ‘A’ stands for alpha character from“A” to “Z” except “O” in first position, character from “A” to “L” insecond position, character “*” or character from “A” to “Z” except “O”in last position. Similarly, ‘N’ stands for numeric digit from “0” to“9”. The number array returned by the routine has one element percharacter returned in the string. The value of every element of thearray corresponds to the level of certainty that the correspondingOCR-ed digit has been interpreted correctly by the routine. For exampleusing U.S., assuming OCR routine outputs: “AB12345678C” and an 11-valuearray (100, 90, 92, . . . , 88), the array values are interpreted as:probability that “A” is correct=100%, “B” is correct=90%, “1” iscorrect=92%, . . . , “C” is correct=88%.

Countries other than US need a unicode representation for the returnedstring. In this OCR, an approach has been adopted where each unicodecharacter is represented by a byte value (retaining the sortingsequence) and is decoded only when the need arises. However, the trueunicode representation of the string can be adopted. However, twice thenumber of bytes to keep the same information are required.

After OCR routine 151 reads the DIBits array 153, it reads country anddenomination specific information available in non-volatile memory (orthe windows registry, etc.) 154. This information is used to roughlycrop the image of the serial number 153, so that the DIBits array issmaller allowing subsequent OCR operations to be more efficient andfaster. The OCR routine then calls a series of digital filter routines(156 to 161) that “prepare” the serial number for the actual OCRoperations. To facilitate the present description of OCR routine 151,the terms “DIBit data,” “picture,” and “image” are used interchangeablyin the remainder of the description of OCR routine 151 in FIG. 18, sinceit is well understood that, mathematical operations of digital filtersact on bytes.

An important step in recovering a serial number of a banknotes is the‘isolation’ of the serial number text from the background. Thisoperation is performed by backgr filter routine 156. Older US banknoteshad no significant background but newer ones share the problems thatexisted with banknotes of other countries, including European Eurobills. The remove, background portion of the OCR includes a set oftransformations in color space, utilizing hue and saturation values toseparate text and noise (background). Although separation is possibleusing background removal filter routing 156, to enhance accuracy of theOCR, the filtered data are further enhanced by the next filter function.

A common problem with all fast color image capture devices is thatwhites are not really whites and blacks are not really blacks. Thatmeans that all colors must be restored to their proper saturation,brightness, and contrast. A digital filter used in routine 157 works insuch a way that it corrects (enhances) the picture of the serial number.

After the enhancement of the serial number image, we use a ‘smart’ Blackand White conversion routine 158 is used, that tries to preserve as much‘color edge’ information as possible while minimizing the noisegenerated from background remnants. The level that defines theconversion is calculated automatically. However, the programmer can finetune the level for a particular individual denominations by using aformatting information reading routine 154.

Conversion to B/W routine 158 usually leaves behind some noise in termsof speckles or pixel wide lines. This is especially true in the case ofreally highly saturated backgrounds. These remnants can be largelyremoved by despeckle and de-noise routine 159. OCR routine 151, candecide when to use the despeckle and de-noise routines. The user canalso influence this decision by intervening through function 154.

In certain configurations, characters are distorted due to the fact thatbills are not flat and/or are skewed when fed in the counter. The OCRroutine 151 has a built in way of detecting skew pictures and can beflagged externally via 154 to correct for curved support. In thesecases, a geometric distortion function 160 can rotate the picture at anangle that will correct skewness. In addition, geometric distortionfunction 160 can use a special transform that will correct ‘pitch’ or‘punch’ distortion as well.

A photometry distance and camera lens correction routine 161 correctsfor variable thickness of individual characters, due to light conditionsas well as camera response at different angles of incidence. Bothconditions make ‘central’ characters appear thinner than edgecharacters. In addition, the function of this filter can be controlledthrough inputs from function 154.

Thus far in OCR routine 151, all filters have worked in synergy so thatthe picture of the serial number is as uniform, distortion free andsharp as possible. A framing function 162 is an edge detecting routinethat returns the position of the four corners of each digit.

The information obtained by function 162 above is used to separate theoriginal DIBits array created at 153 to individual arrays that containdata for only one character at a time. This is performed by readingindividual character routine 163.

The main part of the OCR routine 151 is performed in routine 164. TheOCR database, includes relevant data information in an array form thatis read here. The format and data of the OCR database are read accordingto the parameters of the specified locale and language obtained fromfunction 154.

The data bits for each character (obtained by 163), their position inthe serial number (obtained in 162) and the contents of the OCR database(164) are fed to the statistical analysis routine 165. In statisticalanalysis routine 165, three different image-matching routines are used.Each valid character from the database is compared to each individualposition of the serial number digit and a value is computed for the “RMS(root mean square) error.” The RMS error that can be used to determineboth the ASCII (or Unicode) value of the character at each position andthe degree of confidence.

There are certain characters that have images with only minordifferences: e.g. a capital G and a capital C in US bills differ only bya few pixels. In the case of similar pairs, the statistical analysisroutine 165 generates two numbers with almost equivalent degrees ofconfidence. Spot-checking routine 165 is called whenever statisticalanalysis routine 165 indicates there may be a similar pairs situation,statistical analysis routine 165 cannot decide which single character itshould choose as an output for a given position in the serial number.Special routines are used in 166 to focus attention to the differencesof the two specific letters to make the final prediction. For example,in the case of C and G described above, the routine looks for thehorizontal line that distinguishes G from a C).

All routines used by OCR routine 151 are CPU intensive, and thus requirelots of computations. To minimize the time needed for recognizing agiven serial number, special algorithms have been developed that do notuse time consuming functions (exponents, square roots, trig functionsetc.) but approximate the result with integer arithmetic operations andpolynomial series expansions. This allows porting of OCR routine 151even to simple microprocessors that do not have an FPU for floatingpoint calculations.

The foregoing disclosure of the preferred embodiments of the presentinvention has been presented for purposes of illustration anddescription. It is not intended to be exhaustive or to limit theinvention to the precise forms disclosed. Many variations andmodifications of the embodiments described herein will be apparent toone of ordinary skill in the art in light of the above disclosure. Thescope of the invention is to be defined only by the claims appendedhereto, and by their equivalents.

Further, in describing representative embodiments of the presentinvention, the specification may have presented the method and/orprocess of the present invention as a particular sequence of steps.However, to the extent that the method or process does not rely on theparticular order of steps set forth herein, the method or process shouldnot be limited to the particular sequence of steps described. As one ofordinary skill in the art would appreciate, other sequences of steps maybe possible. Therefore, the particular order of the steps set forth inthe specification should not be construed as limitations on the claims.In addition, the claims directed to the method and/or process of thepresent invention should not be limited to the performance of theirsteps in the order written, and one skilled in the art can readilyappreciate that the sequences may be varied and still remain within thespirit and scope of the present invention.

1. A handheld device for validating currency, comprising: a scanner forscanning a currency to obtain an image of the currency; a centralprocessing unit; a memory coupled to the central processing unit inwhich a list of identifying information is stored; software forobtaining identifying information associated with the currency from theimage, for comparing the identifying information associated with thecurrency to the stored identifying information, and for causing anotification is there is a match between the identifying informationassociated with the currency and the stored identifying information,wherein the identifying information associated with the currencyincludes a serial number; a memory coupled to the central processingunit that stores the obtained identifying information, including theserial number, associated with the currency; a network interface thatconnects the device to a network for transmitting the obtainedidentifying information to a remote server and obtaining all or aportion of the stored list of identifying information; and wherein thecomponents of the handheld device are enclosed and/or incorporated in ahandheld housing.
 2. The handheld device of claim 1, wherein thehandheld housing further comprising: a card reader that reads creditcards; and a second reader that reads human-readable numbers oralphanumeric characters.
 3. The handheld device of claim 1, wherein thenetwork interface connects the device to a wired or wireless network. 4.The handheld device of claim 1, further comprising: a keyboard thatallows selection of the currency type.
 5. The handheld device of claim1, further comprising: a readout display that displays the obtainedidentifying information associated with the currency being scanned. 6.The handheld device of claim 1, wherein the software includes opticalcharacter recognition software.
 7. The handheld device of claim 1,further comprising: a real-time clock that records a time of scanning ofthe currency.